U.S. Economy Contracted at 5.7% Rate in First Quarter

[Joanne98]

Source: Bloomberg

May 29 (Bloomberg) -- The U.S. economy shrank at a 5.7 percent annual pace in the first quarter, capping its worst six- month performance in five decades and reflecting declines in housing, inventories and business investment.

The contraction in gross domestic product was smaller than the government estimated last month, revised figures from the Commerce Department showed today in Washington. The drop was larger than economists had forecast, and followed a 6.3 percent tumble in the last three months of 2008.

The slowdown is forecast to ease this quarter, reflecting smaller declines in stockpiles of unsold goods and in construction, which may set the stage for a return to growth later this year. Still, companies are likely to continue cutting jobs as profits remain under pressure, causing consumers to limit spending and slowing any expansion.

“The recession is gradually moderating, but the road to recovery will be difficult,” Ryan Sweet, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “The recession should end late this year.”


Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=as.apUp.F7NY&refer=home

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Using the GDP numbers as a metric to gage recessions is BS! "Growth" doesn't matter if it's ALL at the top!

[David__77]

1. That's amazing...

That's a speedy contraction...